Town Centre Securities looks to build on ‘good recovery’

Town Centre Securities' Merrion Centre in Leeds (Credit: Richard Walker / ImageNorth)

Property investor Town Centre Securities has seen a “good recovery” across the business.

Its first-half performance generated pre-tax profits of £10.5m, bouncing back from a £3.5m loss a year earlier.

During the period it sold properties in Harrogate, Leeds and London for a total of £22.5m, which crystalised a profit of £1.2m.

Edward Ziff

TCS’s chairman and chief executive, Edward Ziff, said: “We have seen a good recovery across all three segments of the business in the past six months with good momentum continuing into the early part of 2022.

“We also believe today’s results evidence the success of our new strategic direction, to reset and reinvigorate the business for the future.”

Leeds-based TCS has four aims: to have lower levels of absolute debt and leverage, greatly reduce its reliance on retail, build up a capital light and profitable car park business, and have “significant growth opportunities” through its development pipeline and asset management.

It currently has a development pipeline valued at more than £600m.

TCS’s next development is expected to be Eider House in Manchester’s Piccadilly Basin. It is currently redesigning the scheme, which is for 128 build-to-rent apartments in a 100,000 sq ft building next to the Dakota Deluxe Hotel.

Other major developments planned include office, car-parking, and potentially leisure at Whitehall Riverside in Leeds, and office and residential towers at TCS’s home on the Merrion Estate in Leeds.

The group is keeping watch on the impact of inflation as it prepares for changes to consumer spending, increased property and other expenses, increased construction costs and rent affordability for tenants.

Ziff added: “Our level of rent receipts has been resilient throughout the Covid-19 period, and has now recovered back to pre-pandemic levels, an indicator of the diversified strength of our property portfolio, combined with the relative strength of, and our long-term relationships with, our tenants.”

The results have been welcomed by the market with share price up 11% today to 154.50p per share, although it still remains 70p below the pre-pandemic high of January 2020.